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QUESTION Pool Accessories, Inc., has two divisions-Furniture and Supplies. Segmented income statement information for the most recent fiscal year ended December 31 is shown as
QUESTION Pool Accessories, Inc., has two divisions-Furniture and Supplies. Segmented income statement information for the most recent fiscal year ended December 31 is shown as follows. The Furniture division investment using average operating assets is $6,500 for the year, and the Supplies division investment in average operating assets is $1,750. Pool Accessories, Inc. Segmented Income Statements For Year Ended December 31 Furniture Division Sales $3,000 Variable Costs 1.600 Contribution Margin $1,400 Fixed Costs 250 Contribution to Indirect $1,150 Costs Allocated fixed costs 375 Net Income $775 Supplies Division $1,000 430 8 8 9 1. Calculate ROI for each division. 2. What does ROI tell us about each division? BIVANI E Ea a axx, - ? BO T T . 12 Paragraph
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